Stonegate Capital Partners has updated its coverage on Fold Holdings Inc. (NASDAQ: FLD) following the company's first quarter fiscal 2026 results, which reflected bitcoin-market-driven pressure on activity. The quarter did not change the core thesis but shifted the FY26 focus toward conversion and scaling across products now in market. Revenue declined 21.1% year-over-year to $5.6 million, as transaction volume fell 32% year-over-year to $172 million. Verified accounts approached 85,000 with close to 2,000 net adds. Net loss was $(29.2) million, and adjusted EBITDA was $(5.8) million, though GAAP results were affected by bitcoin treasury fair value changes and financing-related items. Operating expenses declined 19% year-over-year to $13.4 million, supported by lower direct costs, lower stock-based compensation, and lower professional fees. Management noted February marked the bottom across most core KPIs, with early improvement as bitcoin recovered.
Stonegate views 1Q26 as market-driven pressure in transaction-linked activity, while Fold's broader platform strategy moved closer to commercial validation. Key takeaways from the quarter include Fold's transition toward platform-led monetization, with account growth, opex discipline, and concurrent product launches supporting a broader revenue model beyond transaction activity. Credit card execution is the primary FY26 catalyst; with over 1,000 cards live and an approximately 80,000 waitlist, cohort spend, engagement, credit performance, and funding capacity will drive the setup. Capital structure simplification improves strategic flexibility; extinguishing the convertible notes while retaining bitcoin treasury exposure strengthens Fold's ability to scale credit, gift card, and business channels.
For more details, view the full announcement here. Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), provides a full spectrum of investment banking, equity research, and capital raising for public and private companies. Contact Stonegate Capital Partners at (214) 987-4121 or visit stonegateinc.com for more information.